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Sales and Use Tax Consulting, Compliance, and Planning Services
Sales Tax Audit Representation and Defense

Given the complexities of California's Sales and Use Tax Law, coupled with the aggressive approaches of state tax auditors, you should be certain you have knowledgeable and experienced professionals representing and defending your interests you when your company is facing a sales tax audit. You should always ask yourself if your current representative, whether the representative is an outside consultant or someone from within your company, specializes in dealing with the laws, regulations, interpretations, policies, and procedures associated with California sales and use tax. Because our resources at Sales Tax Specialists, Inc. are focused on meeting the California needs of our clients, we have the above qualifications. If you are looking for a firm that prides itself on being experts in California sales and use tax audit defense, and who will aggressively and professionally defend and protect your interests, you have found that firm.

Our California audit representation services range from simple audit consultations before and during an audit, to the complete handling of all aspects of the audit process including the actual field audit work and any necessary appeals proceedings. Based on the methodology of audit representation, we are also fully positioned to represent clients facing California sales and use tax audits throughout the country.

Although we can initiate our representation at any time in the audit process, it is generally most advantageous to our clients when we are engaged prior to the start of the audit. This will allow us to manage the entire process further helping to insure the audit is completed correctly and that your rights are fully protected throughout the whole process.

Click here to use our automated form to request more information on our sales tax audit defense program.

NEXUS Analysis and Help with Unexpected California Sales and Use Tax Issues for Non-California Based Companies

Based on various statutes establishing whether an out-of-state company qualifies as a retailer engaged in business in California, your company may have a legal obligation to collect and pay California sales or use tax even though you may not believe you are doing business inside California. This obligation may exist even though you have not collected any taxes from your customers. Coupled with the California State Board of Equalization's aggressive approach to seeking out these companies and forcing them to pay taxes on all past sales made into California going back as far a eight years, your company may be in need of our help in insuring your rights are protected in this area.

If you are located outside California and are making sales into California you are already at risk for a potential tax liability in this area. In addition to using various other sources of information, California auditors routinely obtain information on companies outside California while conducting audits of California businesses. If you have made sales to California companies, auditors may already have information on your operations. Since no company is completely immune from detection every company should be concerned with protecting themselves from California's aggressive actions. This is where our experience, knowledge, and dedication for our clients will benefit your company.

At STSI we specialize in evaluating the operations of companies outside California doing business in California There are very specific legal requirements that California must adhere to prior to holding an out-of-state company responsible for the collection of tax. We have found that these laws are not always followed by California and that many companies have thereby been subjected to this tax requirement when no actual legal basis existed.

For those companies already in negotiations with California, or who have already been contacted by California, we also offer expert representation with the goal of protecting and defending your rights and insuring that you do not pay more tax than legally due. We can offer help determining the amount of any actual liability of the company, diligently working to legally minimize the tax obligation. In those cases where our clients wish to seek reimbursement from their customers we can also offer effective help in navigating this area as well.

STSI is also able to assist companies with voluntary registration for California if they have a legal registration requirement. This activity involves seeking registration and settlement of past liabilities (often with much shorter periods of past assessment) in a manner best protecting your company’s interests. In most cases this can be accomplished on an anonymous basis until we have reached agreements with the state, offering your company even more protection from the state's often aggressive investigative and registration programs. Click here to use our automated form to request more information on our NEXUS defense and analysis program.

Sales and Use Tax Compliance Reviews

A review of your record keeping and business operations designed to help insure that you are neither underpaying nor overpaying your sales and use tax liability. This program is also designed to point out the major areas of potential problems in recordkeeping leading to unexpected audit liabilities. For example, did you know that a resale certificate that is missing a single piece of information can be held invalid, resulting in tax being assessed on all transactions to the respective customers. It’s true and this is the type of information that we will provide you allowing you to steer clear of these problems.

Our compliance reviews include, at a minimum,the following:

  • Travel to your place of business.
  • Thorough discussion of your operations.
  • Discussion of the application of sales tax in general to your operations provided in an easy to understand format and language.
  • Complete discussion of your accounting practices and internal controls as they relate to sales and use.
  • Sampling of your accounting records designed to offer guidance in areas related to support of your sales for sales tax purposes.
  • Review of exemption support to identify areas of potential audit assessment, allowing you to remedy the problems prior to an audit.
  • Up to two hours of follow-up telephone consultation allowing you to digest and meditate on our visit and then get answers to any follow-up questions you may have.
Although it is imperative for every taxpayer undergoing a sales tax audit to have knowledgeable and experienced representation, we also know that this type of pre-emptive review, before an audit takes place, could be the most important thing a business owner can do to help eliminate future, devastating, and unexpected sales tax audit problems. With the various state sales tax rates reaching upwards of 10%, minor errors in this area can translate into huge sales tax liabilities.

In addition, considering that a high percentage of audits result in substantial liabilities, the cost of this type of review can be nominal in comparison to the out-of-pocket tax expense resulting from non-compliance. After all, where can you turn a very minimal expense into income in the form of tax savings of potentially tens, or even hundreds, of thousands of dollars depending upon the type of business and issues involved? Click here to use our automated form to request more information on our sales and use tax compliance reviews.

Sales Tax Audit Protection Program

Our Sales Tax Audit Protection Program includes, at a minimum,the following:
  • Regular monitoring of your sales activities in conjunction with your internal records.
  • Timely preparation of your sales and use tax returns and prepayments, and
  • Audit defense should you be chosen for a California sales and use tax audit during the period of time you are enrolled in our program.
This program is a perfect package for the business owner who is looking for a way to help insure they are diligent in their efforts to stay in compliance with with the many requirments of the California Sales and Use Tax Law, regulations, interpretations, policies, and procedures. Why not consider putting our nearly 16 years of experience dealing solely with California Sales and Use Tax to work for you today. Please call for complete details on this great package or click here to use our automated form to request more information on our sales tax audit protection program.

Sales Tax Training

Our sales tax training courses are provided in a non-traditional way that we believe better serves our clients. Instead of the normal routine of sending one of your employees to a distant patterned, pre-set sales tax training course why not allow us to come to you.

We have developed a series of training forums that bring us to to your place of business in order to educate as many of your key employees as you see fit. The training sessions run from two hours to six hours, include a general overview of the sales tax laws, regulations, interpretations, and policies and procedures relevant to your business operations, as well as a more detailed look at specific issues impacting your business. Rather than spending your valuable time listening to topics that do not apply to your company, our goal is to provide your company with a complete look at the application of sales and use tax to your business. We will also provide you with relevant reference material that will help protect you from the potential devastating effects of non-compliance with California Sales and Use Tax Law..

We are also pleased to offer all of our training forums to organizations such as trade associations, accounting firms, law firms, and other similar groups. Call for more information about how your group can benefit from our training sessions.

Current sessions include:
  • The California Sales Tax Audit and Appeals Process-What You Need to Know.
  • The California Sales and Use Tax Law vs. the California Construction Contractor-Giving the Advantage Back to the Contractor.
  • Secrets of the California Sales and Use Tax
Click here to use our automated form to request more information on our upcoming sales tax seminars.

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